Victrex (VCT) enjoys a strong start to its financial year as sales jump 41% to £78.7m in its first quarter to 31 December 2017, supported by one-off factors and rising volumes.
The polymer manufacturer says it took advantage of currency hedges at the most favourable post-Brexit rates and sales from its Zyex acquisition. Stripping these factors out, the underlying performance is in line with the the second half of its previous financial year.
Looking ahead, currency is still an overall positive for Victrex, but the polymer specialist warns the stronger pound could become an increasing headwind in 2019.
Stockbroker N+1 Singer says it expects an uplift its full year forecast although the increasing currency headwind is likely to ‘temper forecast momentum.’
Sales volumes grew 30% to 1,051 tonnes in the first quarter with a ‘sizeable proportion’ of volumes for a large electronics order, but this is less impressive compared to negligible volumes over the same period in 2017.
The aerospace division experienced a ‘steady start’, while trading in medical was weaker at the end of the quarter.
